Humana Inc. (HUM): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see the actual engine driving Humana Inc.'s massive healthcare enterprise as we head into late 2025. Honestly, their business model isn't just about selling insurance; it's about owning the care delivery through their integrated CenterWell assets to aggressively manage medical costs. They are projecting consolidated revenues of at least \$128 billion this year, but the real precision play is keeping that Medical Benefit Ratio tightly controlled between 90.1% and 90.5%. This Business Model Canvas distills exactly how Humana Inc. connects its core senior customer segment to its own primary care, pharmacy, and home health services, so check out the nine blocks below to see the mechanics behind that scale.

Humana Inc. (HUM) - Canvas Business Model: Key Partnerships

You're looking at the network Humana Inc. builds to deliver care and manage risk. These relationships are critical, especially given the company's focus on government-sponsored programs and value-based care.

Value-based care providers (e.g., Vori Health, HOPCo)

Humana Inc. is actively scaling its value-based arrangements, particularly in home health and specialized care. Through CenterWell Home Health, the company expects to grow members in some form of value-based home health model by greater than 15% during 2025. This growth is driven by innovative payment models and additional expansion of CenterWell partnerships.

The results from these value-based partnerships are measurable. Humana Medicare Advantage members in these arrangements saw 11.6% fewer emergency room (ER) visits and 7.2% fewer hospital admissions compared to non-value-based care patients. Furthermore, a study with a leading researcher from Harvard University found that patients of value-based, senior-focused primary care experienced 17% more primary care visits, 11% fewer ER visits, and 6% fewer hospitalizations than those in traditional primary care models.

Specific provider partnerships include:

• Vori Health: Serving Humana's Group Medicare Advantage members nationwide with coordinated care navigation.
• HOPCo: Supporting individual Humana Medicare Advantage members in Arizona through its clinically integrated network.
• TailorCare: Offering care coordination, expanding coverage to Dallas beginning November 2025 and to Denver in January 2026.

The provider services arm, CenterWell Primary Care, is also seeing internal growth, anticipating FY 2025 net patient growth of 50,000 to 70,000, which is ahead of the prior expectation of 30,000 to 50,000.

Pharmaceutical companies (e.g., NovoCare® Pharmacy)

CenterWell Pharmacy is using partnerships to expand its specialty pharmacy reach, especially for high-demand medications. CenterWell Pharmacy was selected as the fulfillment pharmacy for NovoCare® Pharmacy's weight loss medication for cash-paying customers. Also, CenterWell has invested in partnerships with pharmaceutical companies to spur direct-to-consumer sales, including a deal with Novo Nordisk for GLP-1 medications.

These pharmacy operations are a financial driver; CenterWell's operating income reached $344 million in the second quarter, up 2% year over year, largely due to higher volumes and a more favorable drug mix in pharmacy.

Independent insurance brokers and agents

Humana Inc. relies on external distribution channels to enroll its members, particularly for its Medicare offerings. Licensed sales agents are available 8 a.m. to 8 p.m. local time, seven days a week to assist beneficiaries with enrollment options. The company offers 793 individual Medicare Advantage plans across the country for 2025.

Government (CMS) for Medicare and Medicaid contracts

Government contracts form the bedrock of Humana Inc.'s business. As of February 2025, the company's total Medicare Advantage (MA) enrollment was just over 5.8 million members, following a planned reduction of more than 410,000 enrollees to stabilize finances. For 2025, Humana plans MA offerings in 48 states, plus Washington, D.C., and Puerto Rico, covering 89% of U.S. counties.

The company maintains a strong position in specific government segments:

Humana also secured a Virginia Medicaid contract in July 2025, opening a new dual special needs plan (D-SNP) market growth opportunity. The company expects to keep 50,000 more individual MA members than previously forecast over the course of 2025.

Potential partnership with Mark Cuban's Cost Plus Drugs

Humana Inc. CEO Jim Rechtin and Mark Cuban disclosed discussions for a potential partnership focusing on direct-to-employer programs designed to simplify the drug supply chain by bypassing traditional pharmacy benefit managers (PBMs). This potential collaboration could leverage Humana's scale, which includes more than 8 million health plan enrollees, with over 5 million in Medicare Advantage plans. Cost Plus Drugs, launched in January 2022, currently carries over 2,500 medications.

Humana Inc. (HUM) - Canvas Business Model: Key Activities

You're looking at the core engine room of Humana Inc. as of late 2025, focusing on what they actually do to generate revenue and manage risk. It's all about execution on the government-sponsored side and scaling up their owned care delivery network, CenterWell.

Underwriting and managing government-sponsored health plans

This is the bread and butter, primarily through Medicare Advantage (MA) and Medicaid. Humana Inc. is actively managing its risk exposure here by pruning its portfolio.

The company affirmed its full-year 2025 Insurance segment benefit ratio guidance range to be between 90.1 percent to 90.5 percent. The Q2 2025 Insurance segment benefit ratio came in at 89.9 percent, which was in line with the expectation of approximately 90 percent. For the first quarter of 2025 (1Q25), the Adjusted (non-GAAP) Benefit Ratio was 87.4 percent.

The strategy involves a deliberate reduction in the individual MA book, with the revised FY 2025 guidance anticipating a decline of approximately 425,000 members, an improvement from the previously guided decline of up to 500,000 members. This MA portfolio is being recalibrated toward higher-margin segments, targeting a 3%+ pre-tax margin in individual MA. The Group MA business is valued at about $8.5 billion. On the Medicaid front, Humana Inc. has grown to 1.6 million Medicaid members and launched a new Virginia Medicaid contract in July 2025.

Here's a look at the key membership and margin targets:

Operating the integrated CenterWell healthcare services network

CenterWell is the vertical integration play, encompassing pharmacy, primary care, and home solutions. This segment is a pivotal growth engine for Humana Inc.

CenterWell Segment revenues for the second quarter of 2025 were $5.5 billion, representing an 11.9 percent increase from the previous year. Year-to-date (YTD) 2025 CenterWell GAAP segment revenues reached $10,632 million. The operating income for the segment in Q2 2025 was $344 million, up 2 percent year-over-year. CenterWell Primary Care is anticipating net patient growth for FY 2025 in the range of 50,000 to 70,000 new patients. As of the third quarter of 2025, CenterWell Primary Care saw growth of 56,600 patients, or nearly 15 percent, compared to December 31, 2024. Services from this network are projected to result in 10%+ fewer hospitalizations for members utilizing them.

CenterWell Pharmacy continues to show strength, winning access to 17 new limited distribution drugs in Q2 2025.

Strategic pricing and exiting unprofitable Medicare Advantage plans

This activity directly supports the medical cost management goal. Humana Inc. overhauled its MA plans for 2025, which included cutting benefits and charging higher premiums in certain areas. The company is focused on a benefit structure that drives sustainable, long-term value creation with its 2025 pricing strategy. The strategic pivot aims for a doubling of MA margins by 2026.

Claims processing and medical cost management

Managing claims efficiently directly impacts the benefit ratio. Days in Claims Payable (DCP) at June 30, 2025, was 36.5 days, a decrease of 5.1 days from June 30, 2024, driven by faster processing of pharmacy claims. As of September 30, 2025, the DCP metric was 33.2 days. The Insurance segment's adjusted income from operations was down 7% year-over-year in Q2 2025, despite the medical costs remaining generally in line with what the company planned for coming into 2025.

The operating cost ratio for the Insurance segment in 1Q25 was 8.2 percent on an Adjusted (non-GAAP) basis, an improvement from 8.3 percent in 1Q2024.

Investing a few hundred million dollars in member outcomes

Humana Inc. is actively reinvesting capital into initiatives designed to improve member health and operational structure. The raised full-year 2025 Adjusted EPS outlook of approximately $17.00 includes approximately $100 million in incremental investments toward member outcomes and operational excellence, as noted in the second quarter results. This reinvestment aligns with the 2025-2028 Growth Plan, which prioritizes reinvestment in CenterWell and Medicaid as the highest-yield opportunities.

The company executed approximately $100 million in share repurchases in the second quarter of 2025.

Humana Inc. (HUM) - Canvas Business Model: Key Resources

You're looking at the core assets Humana Inc. relies on to drive its business, especially as we move through late 2025. These aren't just line items; they are the engines of their value proposition, particularly in the Medicare Advantage space. Here's a breakdown of the hard numbers underpinning their operations.

CenterWell integrated care assets represent a significant portion of Humana Inc.'s non-insurance value. This includes the primary care clinics, pharmacy services, and home care capabilities that are increasingly integrated with their insurance offerings. As of the third quarter of 2025, the growth in the primary care arm was clear.

The large Medicare Advantage member base is the foundational revenue driver for the Insurance Segment. While membership has seen strategic pruning, the scale remains massive.

• FY 2025 Individual Medicare Advantage membership decline guidance, as revised after 3Q25, anticipates a drop of approximately 425,000 members.
• As of June 30, 2025, 3,542,300 members, representing 68% of individual Medicare Advantage members, were in value-based relationships.
• Total medical membership for the Insurance segment stood at 14.8 million as of March 31, 2025.

Humana Inc.'s ability to manage risk and care costs is heavily dependent on its proprietary data analytics capabilities, which feed into risk adjustment and care management programs. This is a less tangible asset, but its effectiveness is reflected in the financial performance metrics.

The extensive network of contracted healthcare providers supports Humana Inc.'s market presence. The company's plans are available across a wide footprint, giving members choice, which is a key value point.

• Humana Medicare plans are available in 48 states.
• The company sells plans in 85% of U.S. counties.

Finally, the financial capital supports the ongoing operational needs and investment in growth, as seen in the guidance for the core insurance business. This is the financial cushion required to operate a high-volume health insurer.

The affirmed full-year 2025 guidance for the Insurance Segment Benefit Ratio (the percentage of premiums paid out in claims) is set within a tight range, showing management's expectation for cost control relative to revenue.

The target range for the Insurance Segment Benefit Ratio for the full year 2025 is affirmed between 90.1 percent to 90.5 percent. For context, the reported ratio for the third quarter of 2025 was 91.1 percent.

Humana Inc.'s consolidated revenues guidance for the full year 2025 is set at at least $128 billion.

Humana Inc. (HUM) - Canvas Business Model: Value Propositions

You're looking at the core value Humana Inc. (HUM) delivers to its members and the market as of late 2025. It's all about making senior healthcare more accessible, integrated, and predictable, especially through its CenterWell division. The numbers show a clear focus on scaling its provider arm while managing the core insurance risk.

Comprehensive, affordable Medicare Advantage plans for seniors

Humana Inc. is definitely leaning into the Medicare Advantage (MA) space, which is where a lot of the action is for seniors. For the 2025 plan year, you can see the sheer scale of their offering; they have a total of 793 individual Medicare Advantage plans available across the country. As of the third quarter of 2025, the total medical membership across all segments stood at 15 million lives. The company is strategically managing its MA footprint, revising its expected individual MA membership decline for the full year 2025 to be up to 425,000 members, which is an improvement from earlier estimates, suggesting better retention or sales execution. To make these plans accessible, Humana is expanding its geographic reach, offering MA plans in 48 states, plus Washington, D.C., and Puerto Rico, covering 89% of U.S. counties. Affordability is highlighted by specific plan features; for instance, one group Medicare Advantage PPO plan has a stated monthly premium of $533.09.

Integrated primary care, pharmacy, and home health services via CenterWell

The integration of services through CenterWell is a major differentiator. This isn't just an insurer; it's an integrated care delivery system. CenterWell Primary Care is seeing aggressive growth targets, anticipating a net patient growth for FY 2025 between 50,000 to 70,000 new patients. This growth is supported by a physical footprint that, when combined with its sister brand Conviva Senior Primary Care, operates more than 340 centers. The financial contribution is growing too; CenterWell's operating income in the second quarter of 2025 reached $344 million, marking a 2% year-over-year increase. On the pharmacy side, CenterWell Pharmacy is recognized for its service, winning the MMIT Patient Choice award for the 7th time in 8 years of the program's history. This integration is key to their overall financial health, as evidenced by the affirmed FY 2025 Adjusted EPS guidance of approximately $17.00.

Coordinated, value-based care focused on holistic well-being

The value proposition centers on moving from fee-for-service to value-based care, aiming for better patient outcomes. This focus is reflected in the insurance segment's performance metrics, where the benefit ratio for Q3 2025 was 91.1%, showing management's focus on medical cost control relative to premiums collected. Holistic well-being is delivered through concrete programs. For example, members discharged from the hospital via the CenterWell program can be eligible for 28 free nutritious frozen pre-cooked meals delivered to their door. This approach is designed to support the company's overall revenue goal, with FY 2025 consolidated revenues guided to be at least $128 billion.

Predictable out-of-pocket costs and supplemental benefits

Predictability in costs is crucial for seniors planning their fixed incomes. You see this in the structure of their plans, which cap out-of-pocket exposure. For one specific Medicare Advantage Prescription Drug Plan, the annual maximum out-of-pocket cost is set at $2,000. Furthermore, for a specific PPO plan, the in-network maximum out-of-pocket limit for Medicare-covered services is $1,200. Supplemental benefits are also a key feature, with Humana including coverage for new glasses every year in every plan that offers a vision benefit for 2025. The table below summarizes some of these key cost and benefit structures found across their 2025 offerings.

Here's a quick look at some of the cost and benefit structures:

Access to a growing CenterWell Primary Care network

The expansion of the physical care network directly supports the value proposition of integrated, coordinated care. You saw the patient growth target earlier, but the physical expansion is also significant. Humana plans to add between 20 to 30 new centers in existing markets in 2025, including 11 Walmart co-located sites expected to open by year-end. This growth is happening across new metro areas like Augusta, GA, and Wichita, KS. The focus is on scaling the delivery assets-primary care, home health, and pharmacy-to deliver that superior patient experience. The company's confidence in its strategy, which includes this provider growth, is underpinned by its Q3 2025 adjusted earnings per share of $3.24.

You should definitely track the net patient growth against that 50,000 to 70,000 target, as that's the clearest measure of the CenterWell value proposition scaling in real-time. Finance: draft 13-week cash view by Friday.

Humana Inc. (HUM) - Canvas Business Model: Customer Relationships

You're looking at how Humana Inc. connects with the millions of members and patients relying on their services as of late 2025. It's a mix of high-touch clinical interaction and scalable digital support, especially within their CenterWell ecosystem.

Dedicated care coordination and navigation services

Humana Inc. focuses on value-based care models, which inherently require deep coordination. This is evident in the growth of their integrated care delivery assets. The company continues to strategically expand its footprint in CenterWell and Medicaid, aiming for sustainable, long-term value creation through improved outcomes.

The scale of their integrated care delivery organization is significant:

• CenterWell Primary Care anticipated FY 2025 net patient growth between 50,000 to 70,000 new patients.
• CenterWell Primary Care reported growth of 56,600 patients in 3Q25 compared to December 31, 2024, representing nearly 15 percent growth at the midpoint.
• Humana's Medicare Advantage segment, as of June 30, 2024, served more than 5.6 million members.
• The company affirmed its expectation for an individual Medicare Advantage membership decline of approximately 425,000 members for FY 2025, driven by stronger retention and better sales than previously anticipated.

High-touch, personalized engagement through CenterWell clinics

The CenterWell brand is the physical manifestation of this high-touch approach, particularly for seniors. They are actively expanding this physical presence to meet demand in value-based care settings. This model emphasizes spending more time with patients, focusing on both physical and mental health aspects.

Here's a look at the physical footprint and patient base for the senior-focused primary care division as of late 2025:

To be fair, the focus on value-based care means the relationship is measured by outcomes; value-based care patients showed a 14.6 percent higher rate of completing preventive screenings compared to non-value-based Medicare Advantage members in 2022. Also, Humana received the highest CX Index score among health insurers in Forrester's proprietary 2024 Customer Experience Benchmark Survey.

Broker/agent-assisted sales and enrollment

For Medicare Advantage and other individual products, the broker and agent channel remains a key touchpoint for new enrollment. Humana Inc. structures its relationship with these external partners through detailed commission and partnership plans.

The relationship is governed by specific compensation structures:

• Some commission structures for Dental agents in 2025 indicated a New/Renewal rate of 7% / 7%.
• The 2026 Individual Products Producer Partnership Plan (PPP) outlines commission rates based on beneficiary location and prior history.
• Agents must complete annual AHIP Medicare certification and Humana's product-specific training to sell Medicare plans.

Digital self-service tools and telehealth options

Humana Inc. is pushing digital integration to streamline administrative interactions, freeing up clinical staff for more complex needs. This is a clear move toward automated, efficient service delivery.

You see this in their technology partnerships:

The digital insurance verification workflow, activated with Epic, now supports over 800,000 Humana Medicare Advantage members across 120 health systems as of November 2025. This automation cut registration time by about 90 seconds per patient interaction in early studies. That's 90 seconds saved on every check-in, which adds up fast. Furthermore, CenterWell Pharmacy won the MMIT Patient Choice award for the 7th time in 8 years of the program's history.

Finance: draft 13-week cash view by Friday.

Humana Inc. (HUM) - Canvas Business Model: Channels

You're looking at how Humana Inc. gets its value propositions to its distinct customer segments, and it's a multi-pronged approach blending physical locations, digital interfaces, and third-party intermediaries.

CenterWell Primary Care centers and Home Health services

The physical delivery channel for Humana Inc.'s healthcare services is heavily weighted through its CenterWell segment.

• CenterWell Senior Primary Care and Conviva operated over 340 centers as of December 31, 2024.
• These centers delivered care to approximately 390,000 seniors at the end of 2024.
• CenterWell added 56,600 patients since December 2024, representing a 15% growth rate as of the third quarter of 2025.
• CenterWell revenues reached $5.9 billion in the third quarter of 2025.
• The organization planned to add 20-30 new centers in 2025, including 23 co-located at select Walmart locations expected to open by the middle of 2025.

Independent and captive insurance agents/brokers

Humana Inc. relies on a network of agents and brokers, particularly for its Medicare Advantage offerings, though compensation structures are dynamic.

Here are examples of the distribution of Humana MarketPoint® licensed Medicare agents across select states:

Reports indicate that Humana and UnitedHealth were reportedly reducing broker commissions for certain Medicare Advantage plans as of late 2025.

Direct-to-consumer marketing (TV, direct mail, digital)

Significant investment drives awareness and direct enrollment across various media.

• Humana Inc. spent over $100 million on advertising across digital, print, and national TV in the last year leading up to late 2025.
• The company advertised on over 250 different Media Properties in the last year across multiple formats.
• Humana launched and advertised 8 new products in the past twelve months.
• CenterWell Pharmacy growth was spurred by investments in partnerships for direct-to-consumer sales, such as the deal with Novo Nordisk for GLP-1 medications.

Online enrollment platforms and Humana.com

Digital channels facilitate both consumer self-service and agent support.

• Humana.com hosts secure sections for agents and brokers to manage compensation reports and update direct deposit information.
• The company maintains a social media presence, including over 400K followers on Facebook and over 13K followers on Instagram as of late 2025 data points.
• Virtual care and an online health portal are available to keep patients connected.

State-based Medicaid contracts (e.g., new Virginia contract)

State contracts provide a scalable revenue stream by managing care for large, defined populations.

• Humana launched its Humana Healthy Horizons Medicaid plan in Virginia under the Cardinal Care program in July 2025.
• Through the Humana Healthy Horizons brand, the company served nearly 1.5 million Medicaid members nationally as of July 2025.
• Humana committed an additional $2 million over the next five years to the Virginia Health Care Foundation (VHCF), following an initial $500,000 investment to support behavioral health workforce expansion in Virginia.

Humana Inc. (HUM) - Canvas Business Model: Customer Segments

You're looking at the core groups Humana Inc. serves as of late 2025, which is heavily concentrated in government-sponsored programs. Honestly, the story here is managing the massive Medicare Advantage base while growing in other areas.

Seniors aged 65+ (Individual Medicare Advantage is the core)

This group remains the bedrock of Humana Inc.'s business. For the fiscal year 2025, the company revised its expectation for the decline in individual Medicare Advantage membership to be around 425,000 members, which is an improvement from the earlier projection of a decrease up to 500,000 members. This suggests stronger retention and better sales performance than initially modeled for the year. As of the third quarter of 2025, the company was grappling with pressures in this segment, posting a medical cost ratio of 91.1%. To serve this segment, Humana Inc. offered a total of 793 individual Medicare Advantage plans throughout the country for 2025. The overall geographic reach for these plans covers 89% of U.S. counties across 48 states, plus Washington, D.C., and Puerto Rico.

Dual Eligible Special Needs Plan (D-SNP) members

D-SNP members, those eligible for both Medicare and Medicaid, are a critical, high-touch sub-segment. As of December 31, 2024, Humana Inc. reported approximately 814,000 D-SNP members within its Individual Medicare Advantage count. This represented a decrease of 123,100 members from the end of 2023. Still, the company is actively expanding this offering; for instance, D-SNPs were set to be offered in North Dakota in 2025, and Humana Inc. launched a Virginia Medicaid contract in July 2025, opening a new D-SNP market growth opportunity there.

Medicaid beneficiaries (via Humana Healthy Horizons)

While specific standalone Medicaid enrollment numbers for the Humana Healthy Horizons brand aren't explicitly broken out against the total membership, the Medicaid business is a key part of the Insurance segment, which reported total medical membership of 15 million as of September 30, 2025. The company continues to strategically expand within its Medicaid business.

Military families and retirees (TRICARE)

Humana Inc.'s nearly all of its medical membership stems from Medicare, Medicaid, and the military's TRICARE program. Specific 2025 membership figures for the TRICARE customer segment are not separately itemized in the latest reports, but it forms a recognized pillar alongside government programs.

Employer groups (Group and Specialty segment)

This segment includes Group Medicare Advantage and specialty health insurance products. Group Medicare Advantage membership was expected to remain relatively flat compared to the end of 2024. Furthermore, the company has been strategically exiting the employer group commercial medical products business, which impacted first-quarter 2025 results.

Here's a quick look at the scale of the core government-backed membership as of the latest reporting periods:

The value proposition tailored to these segments is reflected in the product structure, which includes specific benefits for D-SNP members, such as:

• $0 copays for hundreds of covered prescriptions in many D-SNPs.
• Coverage for routine dental, vision, and hearing care not provided by Original Medicare.
• Monthly allowance for over-the-counter (OTC) items.

The company's overall strategy involves prioritizing membership expected to drive sustainable, long-term value creation. Finance: draft 13-week cash view by Friday.

Humana Inc. (HUM) - Canvas Business Model: Cost Structure

The cost structure for Humana Inc. is heavily weighted toward medical costs, which is typical for a managed care organization. You're looking at the core expenses that drive the bottom line, so these ratios are key to understanding profitability.

The largest component of Humana Inc.'s cost structure is the Medical Benefit Expenses, which represents the claims paid out for member care. For the full fiscal year 2025, Humana Inc. affirms its guidance for the Insurance unit benefit ratio to be in the range of 90.1% to 90.5%. To be fair, the actual third quarter 2025 insurance segment benefit ratio came in slightly higher at 91.1%.

The second major cost category involves the Operating and administrative costs, often referred to as the operating cost ratio. The consolidated adjusted operating cost ratio is anticipated to fall between 11.3% and 11.7% for 2025. The third quarter 2025 adjusted operating cost ratio was reported at 11.8%. This ratio reflects costs like salaries, IT, and general overhead.

Here's a quick look at the key projected cost ratios for 2025:

Humana Inc.'s focus on value-based care directly impacts provider compensation costs by shifting incentives. The company is actively expanding these models. For instance, through CenterWell Home Health and OneHome, Humana stated an expectation of growing members in some form of value-based home health model by greater than 15% during 2025.

The company's spending on Technology and data infrastructure investments is embedded within the operating costs, but specific standalone figures for this investment are not detailed as a primary cost structure line item in the latest guidance summaries. However, the overall capital deployment plan is clear.

Capital expenditures for Humana Inc. are projected to be roughly $650 million for the fiscal year 2025.

Other financial data points related to operational spending include:

• GAAP cash flow from operations continues to be estimated within $2.4 billion and $2.9 billion for 2025.
• Net income for the third quarter 2025 totaled $195 million.
• Adjusted earnings per share (EPS) estimate for FY 2025 is reiterated at around $17.00.

Finance: draft 13-week cash view by Friday.

Humana Inc. (HUM) - Canvas Business Model: Revenue Streams

You're looking at the core ways Humana Inc. brings in cash as of late 2025. The business model leans heavily on government-sponsored health plans, but the growth story is increasingly tied to its health services arm, CenterWell. The company has shown confidence in its 2025 financial trajectory, raising its top-line expectations.

The overall expected top-line number for the full fiscal year 2025 is a significant benchmark:

• Full-year consolidated revenues guided to be at least $128 billion.

To give you a sense of the quarterly run rate supporting that guidance, Humana reported total revenue of $32.4 billion for the second quarter ended June 30, 2025.

The revenue streams are fundamentally split between the Insurance segment (premiums) and the CenterWell segment (services). Based on the latest available full-year segment data structure (FY 2024), the Insurance Segment accounted for approximately 85.09% of total revenue, while the CenterWell Segment accounted for approximately 14.91%. This structure underpins the 2025 guidance.

Here is a breakdown of the key components feeding into that revenue:

Focusing on the CenterWell growth engine, which diversifies the revenue base away from pure insurance premiums, you see concrete operational metrics driving that service revenue:

• CenterWell Primary Care anticipated FY 2025 net patient growth between 50,000 to 70,000 patients.
• CenterWell Pharmacy growth was strong, with increased Specialty volumes and Direct to Consumer growth exceeding previous expectations in Q3 2025.

For the government-backed premiums, the strategy involved significant recalibration to manage costs, which directly impacts premium revenue assumptions. Humana overhauled its Medicare Advantage plans for 2025 by cutting benefits and charging higher premiums. This was done while managing the expected individual MA membership decline, which improved to up to 500,000 members from the prior estimate of approximately 550,000.

Regarding investment income, while a specific dollar amount for the full year 2025 revenue contribution isn't explicitly itemized in the guidance breakdown, the company noted that comprehensive income in Q2 2025 was attributed to the increase in unrealized investment gains despite net losses on investment securities. The balance sheet reflects a strong position to generate this income, with Parent company cash and short-term investments reported at $1,334 million at the end of Q2 2025.